Investors in LyondellBasell Industries NV (LYB) can now trade new options expiring on May 15. Notably, a put contract at a $65.00 strike price has a bid of $3.50, implying that if sold to open, the purchase cost for the stock would effectively be $61.50, a 7.8% discount to the current trading price of $66.09. There is a 57% chance that this put contract may expire worthless.
On the call side, a $70.00 strike price call contract is available with a bid of $2.30. If investors sell to open this covered call, they commit to selling shares at $70.00, yielding a potential 9.40% return if executed at expiration. This strike is approximately 6% above the current stock price, also with a 57% likelihood of expiring worthless. The implied volatility for the put contract is 50%, whereas it’s 54% for the call. The actual trailing twelve-month volatility is calculated at 47%.
